Move Could Worsen Relations Between Kurdistan Regional Government and Baghdad

LONDON—Kurdish Peshmerga forces took control of production facilities at two key oil fields near the northern city of Kirkuk Friday, in a politically-charged move that is likely to worsen already frayed relations between the Kurdistan Regional Government and Baghdad.

In statements that cast dramatically opposing views of the event, the central government and KRG confirmed Kurdish Peshmerga forces had taken control of oil fields...